GMR Energy Limited, a subsidiary of GMR Infrastructure Limited, has entered into an agreement with Adani Transmission Limited to transfer its interest in transmission projects--Maru Transmission Services Limited and Aaravalli Transmission Services Limited to ATL.
Currently, 74 per cent stake in MTSL and 49 per cent stake in ATSL shall be transferred to ATL.
There is an option to acquire the balance stakes in both the projects.
The equity consideration for both the projects is Rs 100 crore. The total value realisable for GMR could be Rs 220 crore considering the equity consideration and expected upside of upto Rs 120 crore from regulatory proceeds of various appeals of the assets before the APTEL.
After the deal completion, the consolidated debt of the GMR Group would be reduced. The total debt in these projects as on March 31, 2016 is Rs 324 crore.
GBS Raju, Business Chairman–Energy, GMR Group, said: “GMR Group continues on its path of Asset Light Asset right strategy. The deal will release further liquidity and deleverage the GMR balance sheet. The asset sale done at challenging market environment further signifies GMR's ability to create value for its stakeholders.”
GMR Energy Limited was awarded two transmission projects on BOOM basis in 2010. MTSL operates 270 Km of 400 KV / 220 KV transmission lines in Rajasthan. The Project was commissioned in 2013.
ATSL operates 96 Km of 400 KV transmission line in Rajasthan. The Project was completed in 2014.
All the three distribution companies of Rajasthan (Discoms) are the beneficiaries of the transmission services being provided by these Transmission SPVs.
The transmission assets (MTSL and ATSL) form a part of the excluded group of assets from the Tenaga transaction.